[Congressional Record Volume 151, Number 119 (Wednesday, September 21, 2005)]
[Senate]
[Pages S10300-S10301]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Florida (for himself and Mr. Bingaman):
  S. 1744. A bill to prohibit price gouging relating to gasoline and 
diesel fuels in areas affected by major disasters; to the Committee on 
Commerce, Science, and Transportation.
  Mr. NELSON of Florida. Mr. President, I ask unanimous consent that 
the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1744

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Price Gouging Act of 2005''.

     SEC. 2. PRICE GOUGING PROHIBITION FOLLOWING MAJOR DISASTERS.

       The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
     amended--
       (1) by redesignating sections 25 and 26 (15 U.S.C. 57c, 58) 
     as sections 26 and 27, respectively; and
       (2) by inserting after section 24 (15 U.S.C. 57b-5) the 
     following:

     ``SEC. 25. PROTECTION FROM PRICE GOUGING FOLLOWING MAJOR 
                   DISASTERS.

       ``(a) Definitions.--In this section:
       ``(1) Affected area.--The term `affected area' means an 
     area affected by a major disaster declared by the President 
     under Federal law in existence on the date of enactment of 
     this subsection.
       ``(2) Price gouging.--The term `price gouging' means the 
     charging of an unconscionably excessive price by a supplier 
     in an affected area.
       ``(3) Supplier.--The term `supplier' means any person that 
     sells gasoline or diesel fuel for resale or ultimate 
     consumption.
       ``(4) Unconscionably excessive price.--The term 
     `unconscionably excessive price' means a price charged in an 
     affected area for gasoline or diesel fuel that--
       ``(A) represents a gross disparity, as determined by the 
     Commission in accordance with subsection (e), between the 
     price charged for gasoline or diesel fuel and the average 
     price of gasoline or diesel fuel charged by suppliers in the 
     affected area during the 30-day period immediately before the 
     President declares the existence of a major disaster; and
       ``(B) is not attributable to increased wholesale or 
     operational costs incurred by the supplier in connection with 
     the sale of gasoline or diesel fuel.
       ``(b) Determination of the Commission.--Following the 
     declaration of a major disaster by the President, the 
     Commission shall--
       ``(1) consult with the Attorney General, the United States 
     Attorney for the district in which the disaster occurred, and 
     State and local law enforcement officials to determine 
     whether any supplier in the affected area is charging or has 
     charged an unconscionably excessive price for gasoline or 
     diesel fuel provided in the affected area; and
       ``(2) establish within the Commission--
       ``(A) a toll-free hotline that a consumer may call to 
     report an incidence of price gouging in the affected area; 
     and
       ``(B) a program to develop and distribute to the public 
     informational materials in English and Spanish to assist 
     residents of the affected area in detecting and avoiding 
     price gouging.
       ``(c) Price Gouging Involving Disaster Victims.--
       ``(1) Offense.--During the 180-day period after the date on 
     which a major disaster is declared by the President, no 
     supplier shall sell, or offer to sell, gasoline or diesel 
     fuel in an affected area at an unconscionably excessive 
     price.

[[Page S10301]]

       ``(2) Action by commission.--
       ``(A) In general.--During the period described in paragraph 
     (1), the Commission shall conduct investigations to determine 
     whether any supplier in an affected area is in violation of 
     paragraph (1).
       ``(B) Positive determination.--If the Commission determines 
     under subparagraph (A) that a supplier is in violation of 
     paragraph (1), the Commission shall take any action the 
     Commission determines to be appropriate to remedy the 
     violation.
       ``(3) Civil penalties.--A supplier that commits an offense 
     described in paragraph (1) may, in a civil action brought in 
     a court of competent jurisdiction, be subject to--
       ``(A) a civil penalty of not more than $500,000;
       ``(B) an order to pay special and punitive damages;
       ``(C) an order to pay reasonable attorney's fees;
       ``(D) an order to pay costs of litigation relating to the 
     offense;
       ``(E) an order for disgorgement of profits earned as a 
     result of a violation of paragraph (1); and
       ``(F) any other relief determined by the court to be 
     appropriate.
       ``(4) Criminal penalty.--A supplier that knowingly commits 
     an offense described in paragraph (1) shall be imprisoned not 
     more than 1 year.
       ``(5) Action by victims.--A person, Federal agency, State, 
     or local government that suffers loss or damage as a result 
     of a violation of paragraph (1) may bring a civil action 
     against a supplier in any court of competent jurisdiction for 
     disgorgement, special or punitive damages, injunctive relief, 
     reasonable attorney's fees, costs of the litigation, and any 
     other appropriate legal or equitable relief.
       ``(6) Action by state attorneys general.--An attorney 
     general of a State, or other authorized State official, may 
     bring a civil action in the name of the State, on behalf of 
     persons residing in the State, in any court of competent 
     jurisdiction for disgorgement, special or punitive damages, 
     reasonable attorney's fees, costs of litigation, and any 
     other appropriate legal or equitable relief.
       ``(7) No preemption.--Nothing in this section preempts any 
     State law.
       ``(d) Report.--Not later than 1 year after the date of 
     enactment of this subsection, and annually thereafter, the 
     Commission shall submit to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Energy and Commerce of the House of Representatives a 
     report describing--
       ``(1) the number of price gouging complaints received by 
     the Commission for each major disaster declared by the 
     President during the preceding year;
       ``(2) the number of price gouging investigations of the 
     Commission initiated, in progress, and completed as of the 
     date on which the report is prepared;
       ``(3) the number of enforcement actions of the Commission 
     initiated, in progress, and completed as of the date on which 
     the report is prepared;
       ``(4) an evaluation of the effectiveness of the toll-free 
     hotline and program established under subsection (b)(2); and
       ``(5) recommendations for any additional action with 
     respect to the implementation or effectiveness of this 
     section.
       ``(e) Definition of Gross Disparity.--Not later than 180 
     days after the date of enactment of this subsection, the 
     Commission shall promulgate regulations to define the term 
     `gross disparity' for purposes of this section.''.

     SEC. 3. EFFECT OF ACT.

       Nothing in this Act, or an amendment made by this Act, 
     affects any authority of the Federal Trade Commission in 
     existence on the date of enactment of this Act with respect 
     to price gouging actions.
                                 ______